Power duo from Palm Beach plead in corruption case

WEST PALM BEACH -- Former County Commissioner Mary McCarty sat a row behind her husband in federal court Friday afternoon, chuckling with their attorneys and smiling at the media.

But when U.S. District Judge Kenneth Ryskamp asked Kevin McCarty how he would plead, the smiling stopped.

"Guilty," he responded.

Mary McCarty dabbed at her face and choked back tears as her husband admitted he took part in her criminal wrongdoing and failed to report it. It was just four hours after she stood before another federal judge and pleaded not guilty to charges that she conspired to deprive the citizens of Palm Beach County of their "intangible right to her honest services."

She spoke briefly after her husband's hearing.

"As you can imagine, this has been another painful day with him and me," McCarty said. "This is a course that I set out, and there's no one else to blame."

Feds: Votes netted $300K

The Republican power couple was charged in connection with McCarty's work as a county commissioner. Federal prosecutors say she voted on bond issues worth millions of dollars managed by her husband's employers. They say the couple netted about $300,000 from the bond deals, though Kevin McCarty's attorney disputed that Friday.

"I would disagree that they benefited at all," attorney Richard Lubin said.

Mary McCarty, 54, appeared on her charge Friday morning. The 18-year former commissioner said little in court, answering only "Yes, your honor," to the federal magistrate's questions about whether she understood the case and the possible penalties. She faces as much as five years in prison and a $250,000 fine.

Her attorney, Dave Bogenschutz, said he expects Mary McCarty to plead guilty later but would not speculate about the potential punishment she faces in a plea agreement with prosecutors.

Four hours later, Kevin McCarty, 59, a former South Florida Water Management District board member, entered his guilty plea. As part of his plea agreement, Lubin and prosecutors agreed to a sentence of one year and one day in federal prison, but the judge will make the final decision. Prosecutors are also seeking to seize $272,000 from the couple. Kevin McCarty is scheduled to be sentenced March 27 and could face as much as three years in prison.

Wide-ranging effects

The effect of the charges has been wide-ranging. The Palm Beach County Commission is vowing to change the way it awards municipal bond accounts to financial firms. Delray Beach, which awarded bond deals to Kevin McCarty's firms, is also looking to change the way it awards bond work and wants an external audit to see what, if any, effect the couple's influence had on city staffers.

Mary McCarty is the third county commissioner and the fifth Palm Beach County politician in three years to be taken down on corruption charges.

U.S. Attorney Alex Acosta has hinted that the overall investigation is continuing.